What Fees Are Associated?

Colorado Home Seller Fees

This insurance provides homebuyers and lenders with vital protection against losses from certain title issues including forgery, fraud, and liens – problems that might limit a homeowner’s use and enjoyment of their property.

Prorating an expense like property tax ensures that buyer and seller each pays a fair share. A fair share is the amount of money that applies to the amount of time the buyer owned the home during the year of the closing. For a July 1 closing, for example, each side will have owned the home for half the year, so each will pay half the cost of pro-rated items.

Since most homeowner associations collect monthly dues upfront (some HOAs bill quarterly or annually), if a seller has not yet paid the dues, the dues will be paid from the seller’s proceeds. The seller will receive a credit for the unused portion of dues.

For example, if the dues are $300 a month, the daily proration is $10. When a transaction closes on the 10th of the month, the seller will be charged 10 days of HOA dues or $100. The buyer will pay $200 for 20 days of HOA dues.

There is a 2% withholding tax on the sales price of Colorado real estate on the amount in excess of $100,000 to sellers not residing in Colorado. The tax is withheld at the time of closing by the title insurance company. It is treated as an estimated payment to Colorado.